Homework Answers
rate positively ..
| ans a) | ||||
| we have to use financial calculator to solve this | ||||
| put in calculator | ||||
| FV | 1000 | |||
| PMT | 1000*9.875% | 98.750 | ||
| I | 7.00% | |||
| N | 6 | |||
| compute PV | ($1,137.04) | |||
| Price = | $1,137.04 | |||
| ans b) | ||||
| we have to use financial calculator to solve this | ||||
| put in calculator | ||||
| FV | 1000 | |||
| PMT | 1000*9.875%/2 | 49.375 | ||
| I | 7%/2 | 3.50% | ||
| N | 6*2 | 12 | ||
| compute PV | ($1,138.91) | |||
| Price = | $1,138.91 | |||
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